Dump US eq­ui­ties – JP Mor­gan

The Star Early Edition - - INTERNATIONAL -

JPMOR­GAN Chase told in­vestors to dump US eq­ui­ties in favour of their Euro­pean coun­ter­parts. The bro­ker­age cut its rat­ing on US stocks to un­der­weight, sim­i­lar to a sell rec­om­men­da­tion, from the equiv­a­lent of buy, while rev­ers­ing the call for euro area eq­ui­ties. As en­thu­si­asm for Euro­pean stocks faded since the be­gin­ning of the year, when bulls united in favour­ing the re­gion, the lag ver­sus the US had now made them too cheap to ig­nore, said strate­gists. The Stan­dard and Poor’s 500 in­dex has gained 10 per­cent this year, and is trad­ing at 17 times its mem­bers’ re­ported earn­ings, show Bloomberg data. The Euro Stoxx 50 in­dex is down 1.8 per­cent this year amid con­cern over the sput­ter­ing euro area econ­omy, tak­ing its mul­ti­ple to 14 times profit. – Bloomberg

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